The Financial Markets Committee (FMC) convened on Tuesday (10 March 2026) to discuss recent financial market developments.

Since the last FMC meeting in October 2025, the ringgit ranked among the top regional performers against the USD, driven by robust portfolio and foreign direct investment (FDI) inflows amid strong domestic economic performance and other supportive factors such as the Government’s continued commitment to fiscal consolidation. Accordingly, the positive investor sentiment and ringgit’s strength are expected to sustain in 2026.

The FMC noted ongoing developments in the global financial markets, particularly the recent escalation of the Middle East conflict. While uncertainties have risen over developments surrounding tariffs and the length and severity of the conflict, domestic financial markets remain relatively resilient against the global volatility, with the onshore markets recording the following movements since end-February:

• The ringgit depreciated by 1.8% against the US dollar, driven by broad-based USD strength amid safe-haven demand. However, on a YTD basis (as of 9 March), ringgit performance remains positive with an appreciation of 2.5%.

• Benchmark 10-year MGS yields rose 11 basis points (bps), broadly in line with the rise in global bond yields, but remain near historic lows.

• The FBM KLCI was relatively stable with a 2.5% decline, indicating resilience in the domestic equity market.

The onshore FX market continues to record a robust average daily trading volume of USD21.4 billion YTD (2025 average: USD19.8 billion). Meanwhile, the demand for Government bonds remains healthy with MGS yields relatively anchored, supported by domestic and non-resident demand. This is reflected in the strong average bid-to-cover (BTC) ratio of 2.7 times in the three recent Government bond auctions (2026 YTD average: 2.3 times). Non-resident holdings of Malaysian Government securities have increased by RM920 million YTD and remain stable at 21.2%. Similarly, the domestic equity market has also attracted RM1.5 billion of non-resident inflows YTD.

Overall, FMC members observed that the Malaysian markets demonstrate resilience amid this period of global uncertainty but remain mindful of the risks of a prolonged conflict. In particular, inflow was seen from exporters as well as FDI which in turn offsets outflow from domestic importers. In the meeting, BNM stated that it will continue to closely monitor development in the financial markets and reaffirm its commitment in ensuring orderly market condition.

The FMC welcomed BNM’s commitment and noted that recent efforts, including the Qualified Resident Investor (QRI) program and engagement with Government-linked companies (GLCs), Government-linked investment companies (GLICs) as well as corporates are continuing and expected to support consistent and healthy two-way flows into the market. This, along with positive sentiment generated from Malaysia’s encouraging growth prospects and structural reform efforts will provide enduring support for the domestic financial markets.

About the Financial Markets Committee (FMC)

The FMC is a committee established by BNM in May 2016 and comprises representatives from BNM, financial institutions, corporations, financial service providers and other institutions which have a prominent role or participation in the financial markets.